Correlation Between Kkr Credit and Ecofibre
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Ecofibre at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Kkr Credit and Ecofibre into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kkr Credit Income and Ecofibre, you can compare the effects of market volatilities on Kkr Credit and Ecofibre and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Kkr Credit with a short position of Ecofibre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Ecofibre.
Diversification Opportunities for Kkr Credit and Ecofibre
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kkr and Ecofibre is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Ecofibre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecofibre and Kkr Credit is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Kkr Credit Income are associated (or correlated) with Ecofibre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecofibre has no effect on the direction of Kkr Credit i.e., Kkr Credit and Ecofibre go up and down completely randomly.
Pair Corralation between Kkr Credit and Ecofibre
Assuming the 90 days trading horizon Kkr Credit is expected to generate 6.59 times less return on investment than Ecofibre. But when comparing it to its historical volatility, Kkr Credit Income is 9.55 times less risky than Ecofibre. It trades about 0.2 of its potential returns per unit of risk. Ecofibre is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2.80 in Ecofibre on October 14, 2024 and sell it today you would earn a total of 0.40 from holding Ecofibre or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kkr Credit Income vs. Ecofibre
Performance |
| Timeline |
| Kkr Credit Income |
| Ecofibre |
Kkr Credit and Ecofibre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Ecofibre
The main advantage of trading using opposite Kkr Credit and Ecofibre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Ecofibre can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ecofibre will offset losses from the drop in Ecofibre's long position.| Kkr Credit vs. Beston Global Food | Kkr Credit vs. Macquarie Technology Group | Kkr Credit vs. Technology One | Kkr Credit vs. Treasury Wine Estates |
| Ecofibre vs. Queste Communications | Ecofibre vs. Wt Financial Group | Ecofibre vs. Dicker Data | Ecofibre vs. Kkr Credit Income |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
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